Nigeria is facing a tough blow after the US, under President Donald Trump's "America First" policy, imposed a 14% tariff on Nigerian exports.
Business leaders fear this move could shake Nigeria's economy, reduce vital foreign exchange income, and hurt key sectors like oil, gas, and agriculture.
Dele Kelvin Oye, President of the Nigerian Association of Chambers of Commerce, warned that the new tariff could lead to job losses and make life harder for local businesses.
Speaking at the 2025 Vanguard Economic Discourse, he said the falling demand from the US could especially harm non-oil sectors that Nigeria has been trying to grow.
This tariff is part of a wider global shift, as the US pulls away from cooperative trade rules and moves towards more unpredictable, self-serving deals. Oye said these changes are making it harder for Nigeria to compete globally.
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Beyond the tariffs, the US has also slashed funding for African startups by $51 million — a move that affects innovation and small businesses in Nigeria and countries like Kenya.
Oye emphasized how this loss of support is a huge setback for young entrepreneurs and growing businesses, which are the backbone of Nigeria's economy.
Still, he believes Nigeria can bounce back. He urged the country to:
- Strengthen trade within Africa through the African Continental Free Trade Area (AfCFTA),
- Build stronger ties with emerging markets like China, India, and Brazil,
- Invest in infrastructure, and most importantly,
- Focus on people especially through vocational education and training to build a skilled, future-ready workforce.
Meanwhile, in a surprising twist, Trump paused his new global tariffs for 90 days except for China after criticism from international markets and leaders.
The pause gives over 75 countries a chance to renegotiate trade terms with the US. But for now, Nigeria is left to deal with the consequences and rethink its place in global trade.
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